Page:United States Statutes at Large Volume 124.djvu/2615

124 STAT. 2589 PUBLIC LAW 111–240—SEPT. 27, 2010 (I) net loan charge offs with respect to small business lending; and (II) gains realized by the eligible institution resulting from mergers, acquisitions or purchases of loans after origination and syndication; which adjustments shall be determined in accordance with guidance promulgated by the Secretary; and (iii) during any calendar quarter during the initial 2-year period referred to in clause (ii), an institution’s rate shall be adjusted to reflect the following schedule, based on that institution’s change in the amount of small business lending relative to the baseline— (I) if the amount of small business lending has increased by less than 2.5 percent, the divi- dend or interest rate shall be 5 percent; (II) if the amount of small business lending has increased by 2.5 percent or greater, but by less than 5.0 percent, the dividend or interest rate shall be 4 percent; (III) if the amount of small business lending has increased by 5.0 percent or greater, but by less than 7.5 percent, the dividend or interest rate shall be 3 percent; (IV) if the amount of small business lending has increased by 7.5 percent or greater, and but by less than 10.0 percent, the dividend or interest rate shall be 2 percent; or (V) if the amount of small business lending has increased by 10 percent or greater, the divi- dend or interest rate shall be 1 percent. (B) BASIS OF INITIAL RATE.—The initial dividend or interest rate shall be based on call report data published in the quarter immediately preceding the date of the capital investment under the Program. (C) TIMING OF RATE ADJUSTMENTS.—Any rate adjust- ment shall occur in the calendar quarter following the publication of call report data, such that the rate based on call report data from any one calendar quarter, which is published in the first following calendar quarter, shall be adjusted in that first following calendar quarter and payable in the second following quarter. (D) RATE FOLLOWING INITIAL 2-YEAR PERIOD.—Gen- erally, the rate based on call report data from the eighth calendar quarter after the date of the capital investment under the Program shall be payable until the expiration of the 41⁄2-year period that begins on the date of the invest- ment. In the case where the amount of small business lending has remained the same or decreased relative to the institution’s baseline in the eighth quarter after the date of the capital investment under the Program, the rate shall be 7 percent until the expiration of the 41⁄2- year period that begins on the date of the investment. (E) RATE FOLLOWING INITIAL 41⁄2 -YEAR PERIOD.—The dividend or interest rate paid on any preferred stock or other financial instrument issued by an eligible institution that receives a capital investment under the Program shall increase to 9 percent at the end of the 41⁄2-year period